Consumer rationality - Samenvattingen, Aantekeningen en Examens

Bounded Rationality - Answer-When the consumer is functional only up to a certain point after which his/her choices are constrained or bound by limed knowledge and understanding of the available choices. Free Market Basic Assumption - Answer-Rational consumers will make informed decisions about value, quality, and price Moral Hazzard - Answer-Consumer will spend someone else's money different than their own Transparency on cost & quality (Market forces) - Answer-helps patients be mor...

Incentives → rewards or penalties for engaging in a particular activity Economics → The study of how people allocate their limited resources to satisfy their unlimited wants Resources → things used to produce goods and services to satisfy people's wants Wants → what people would buy if their incomes were unlimited Microeconomics → the study of decision making undertaken by individuals and by firms Macroeconomics → the study of the behavior of the economy as a whole, inc...

ARE 112 midterm exam questions & answers 2023/2024 bounded rationality - ANSWER-A set of BOUNDARIES or CONSTRAINTS that tend to complicate the rational decision-making process transaction costs - ANSWER-the expenses of negotiating and executing a deal (the cost of completing a sale/purchase) cost of uncertainty - ANSWER-chance that price of an asset will change; unstable stocks or bonds incomplete contracts - ANSWER-When a consumer or seller is not able to maximize the benefits of a...

Behavioral Economics Detailed Final Exam Review with Q&A 2024. Definition behavioural economics - attempt to increase the explanatory and predictive power of economic theory by providing it with more psychologically plausible foundations - can be traced to coginitve psychology -> direct opposite to behaviourism - influenced by psychology, with additional imputs form sociology, anthropology etc. Connected fields Economics, Politics, Ethics, Marketing, Social psychology, Consumer p...

What is the basic assumption underlying concept of a free market and how is it challenged by the theory of "bounded rationality?" (Mod 1.1) - Assumption that rational customers will make informed decisions about value, quality and price, while producers who meet consumer's demands will be rewarded with market share and profit. However this is challenged by the consumer's "bounded rationality" - rational consumer is only functional up to a certain point because choices are constrained ...

TOPIC 9- GLOBALISATION, MODERNITY AND POSTMODERNITY tmINTRO - correct answer most of the theories examined so far in this chapter can be placed under the heading of modernism. modernist theories are part of the enlightenment project- the idea that society can progress through the use of human reason. rationality and science will enable us to discover true knowledge about the world. with this knowledge, we can progress to a future of freedom and prosperity. modernist theories therefore set out ...

Economics - answer-The study or science of production, distribution, and consumption The study of how society manages its scarce resources Society and Scarce Resources - answer-The management of society's resources is important because resources are scarce Scarcity implies choice and choice implies cost Scarcity - answer-Means that society has limited resources and therefore cannot produce all the goods and services people wish to have Why study consumer economics? - answer-To apply...

What is the term used to identify a management philosophy that places customer gain ahead of short-term revenue maximization in revenue management decision making? - ANSWERScustomer-centric revenue management What is the term used to describe the potential customers to whom a business's marketing activities and messages are directed? - ANSWERSthe target market Understanding the barter system is critical because it helps us understand the concept of - ANSWERSvalue without money A compan...

Economics Today The Micro View Chapter 1 Terms Already Verified A+ Key Economics Concepts and Definitions 1. Economics ️: The study of how people allocate their limited resources in an attempt to satisfy their unlimited wants. It explores how individuals make choices. 2. Resources ️: Things that have value and are used to produce goods and services that satisfy people's wants. 3. Wants ️: All the items that people would purchase if they had unlimited income. 4. Microeconom...

CEBS GBA2 Terms and Definitions Exam Questions and Answers Bounded Rationality - Answer-When the consumer is functional only up to a certain point after which his/her choices are constrained or bound by limed knowledge and understanding of the available choices. Free Market Basic Assumption - Answer-Rational consumers will make informed decisions about value, quality, and price Moral Hazzard - Answer-Consumer will spend someone else's money different than their own Transparency on c...